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>>Meta will shrink its Metaverse division by about 10% while putting AI at the forefront.

Meta will shrink its Metaverse division by about 10% while putting AI at the forefront.

crypthub

about 8 hours ago

Reality Labs Layoffs

Meta will cut roughly 10% of the 15,000‑person Reality Labs workforce, eliminating about 1,500 jobs. The reductions target staff working on VR headsets and metaverse platforms such as Horizon Worlds and Horizon Workrooms. Announcements are expected as early as Tuesday, according to sources cited by the New York Times.

Financial Losses and Market Shift

Since its 2020 launch, Reality Labs has accrued more than $70 billion in losses, with a $4.4 billion operating deficit reported for Q3 2025. User adoption has lagged, and gaming‑centric worlds like Roblox and Fortnite dominate engagement while blockchain and corporate metaverses struggle. Horizon Worlds reportedly draws fewer than 900 daily active users.

Strategic Reallocation to AI and Wearables

The layoffs reflect Meta’s broader pivot from metaverse spending toward artificial‑intelligence development. Part of the redirected budget will support the wearables division, including smart glasses and the Meta Neural Band. This shift follows earlier reports of potential cuts up to 30% of metaverse funds.

Shareholder Stance on Bitcoin

In a 2025 vote, Meta investors rejected a proposal to add Bitcoin to the company’s treasury, with only 0.08% of votes in favor. The effort, led by Bitcoin advocate Ethan Peck, sought to allocate a portion of Meta’s $72 billion cash reserve to BTC as an inflation hedge. CEO Mark Zuckerberg’s controlling voting power effectively ensured the proposal’s defeat.